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Nintendo Stock Price Plummets on News That They Don’t Fully Own ‘Pokemon GO’

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Whoops! Nintendo’s share prices in Japan have plummeted 18% after the report on July 22nd that warned investors that Nintendo didn’t actually own that much of Pokemon GO (Free) and thus wouldn’t have the financial impact on their company that the flood of stock purchases would seemingly indicate. It’s possible that after the decline in Japan, further trading could adjust the price further – Nikkei rules indicate that a stock price can’t move more than 18% in one day. Granted, the ownership situation of Pokemon GO is complicated, but one would think the people spending billions of dollars worth in trades would have figured that out first.

https://twitter.com/PokemonGoNews/status/754965559767363584/

There’s still plenty of reasons to be optimistic about Nintendo’s future on mobile, even if Pokemon GO isn’t necessarily a huge money-maker for them. It is seen as a fundamentally Nintendo property – as the doubling of their stock price shows – and it shows that mobile players want Nintendo content. Nintendo’s fully-owned mobile apps could be a reason to invest in the company further. But Pokemon GO? Hold your horses. Just remember, kids – if you ever read a Carter Crater editorial and think I’m too aggressively optimstic about mobile, I have nothing on the investors who doubled Nintendo’s market capitalization without doing the cursory research.

[The Verge]

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